Ann: Consolidation/Split - CDX, page-56

I just bought in today, and must be one of the few people here who likes a consolidation. There's a big psychological barrier to investing in "penny dreadful" stocks with an SP less than say 10c. Having such a low price, with hundreds of millions, or billions of shares on issue, instantly marks a company as being speculative, high-risk and addicted to capital raisings/ dilution to pay directors salaries. A quick check reveals that the lowest SP on the ASX200 is 37c. A consolidation is a significant step in becoming a bona fide blue-chip company IMO. You can say the timing isn't right, but it needs to be done at some point so why not now? The directors have a much better idea about upcoming announcements, and whether the company is indeed on the cusp of a rerating, which may very well be in effect by the end of Feb when the consolidation actually happens. Better to have a respectable share price already in place to attract better investors as the attention fires up.